High-Paying Foreign Guests Are Still Missing in India, Oberoi Hotels Says

Facing a shortfall of high-paying foreign guests, Oberoi is spending more to win domestic travelers instead. India’s domestic travel boom is cushioning luxury hotels from a geopolitical tourism shock, but not completely replacing high-spending international travelers.

EIH Limited, owner of the Oberoi and Trident hotel brands, said international guest arrivals fell at its hotels during the most recent quarter as the Middle East conflict held back overseas travel to India. The company expects that weakness to persist through the current.

What Happened

The company hopes international business will strengthen in the third and fourth quarters if conditions in the region stabilize. The shift in demand is significant for luxury hotels: “international guest propensity to pay is higher” than that of domestic guests, said Oberoi.

• EIH Limited, the owner of the Oberoi and Trident luxury hotel brands, reported that a robust domestic travel market is helping offset a roughly 10% decline in higher-spending international arrivals, driven by instability in.

• To compensate, the company invested about INR 40 million ($420,000) in additional domestic marketing, enabling consolidated revenue to grow 15% to INR 7 billion and portfolio-wide RevPAR to rise, with Trident hotels performing especially.

• Mumbai was a standout market, and EIH is executing phased renovations across its Mumbai, Bengaluru, and Bandra Kurla properties.

What Reports Say

Coverage of the story so far points to:

• Continued reporting by Skift as more details emerge